Judge Orders EminiFX Founder to Pay $228M in Fraud Case

The CFTC secured the ruling, which also holds Alexandre liable for $15 million in disgorgement, on top of his nine-year prison sentence and a separate $213 million restitution order in a criminal case. EminiFX raised $262 million in just eight months by promising unrealistic weekly returns through fake robo-trading technology, while Alexandre siphoned millions for personal use. 

EminiFX Collapse Leaves Founder Owing Millions

A federal judge in New York ordered Eddy Alexandre, the founder of the defunct crypto platform EminiFX, to pay more than $228 million in restitution after ruling that the company operated as a Ponzi scheme that defrauded tens of thousands of investors. The US Commodity Futures Trading Commission (CFTC) secured a summary judgment against Alexandre and EminiFX, with US District Judge Valerie Caproni holding them jointly liable for $228.5 million in restitution and Alexandre personally responsible for an additional $15 million in disgorgement. 

Case ruling (Source: CourtListener)

The decision was made after more than three years of legal battles and comes just over a year after Alexandre pleaded guilty to commodities fraud in a parallel criminal case. For this case, he is serving a nine-year prison sentence and was separately ordered to pay $213 million in restitution.

Press release from the US Attorney’s Office

EminiFX launched in 2021, and quickly drew in more than 25,000 investors and raised $262 million in just eight months by promising weekly returns of up to 9.99% through a so-called “Robo-Advisor Assisted Account” that allegedly deployed automated crypto and forex trading strategies. In reality, the platform sustained losses of at least $49 million and never implemented the trading technology it claimed to use. 

Prosecutors found that Alexandre misappropriated at least $15 million for personal expenses, including luxury cars, credit card bills, and large cash withdrawals. Investor payouts were also made using funds from new participants.

The civil ruling ensures that payments toward restitution will offset the disgorgement obligation, minimizing overlap in financial penalties. A court-appointed receiver has been overseeing the recovery and distribution of assets since 2022,  and partial payouts to victims began earlier this year following court approval of a distribution plan. 

The case sheds some light on the ongoing risks facing investors in the crypto sector, where scams, hacks, and fraud schemes are still running rampant. According to CertiK, crypto-related losses reached $2.47 billion in the first half of 2025.